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Only 2.2% of Nigerians will benefit from new minimum wage – NBS report

Published

10 months ago

June 13, 2024

Only 2.2% of Nigerians will benefit from new minimum wage – NBS report

About 2.2 per cent of the Nigerian population currently put at 229 million will benefit from a new minimum wage being negotiated, a report by the National Bureau of Statistics has shown.
Specifically, the new NBS report stated that 5.3 million of a total of 76 million workers (33.2 per cent of the total population) would benefit from the wage increase.

A back-of envelope calculation by the National Bureau of Statistics (NBS) shows that 1.2 million (23 per cent) and 0.3 million (six per cent) work with the federal government, drawing salaries from the Consolidated Revenue Fund, and government-owned enterprises respectively.

Also, another 1.3 million (25 per cent) and 0.7 million (13 per cent) work with the state governments, their agencies and local government areas. The remaining 1.8 million (34 per cent) work in formal private organisations.

While experts believe that civil and public servants deserve more in terms of their take home packages, they, nonetheless, observed that for the federal and subnational governments to address the wage crisis in the country, they have to do more in reducing the cost of living and provide enabling environment for businesses to thrive, which will in turn improve the livelihoods of millions of citizens that are wallowing in poverty.

And unlike in advanced societies, whatever civil servants earn in Nigeria will directly or indirectly be shared with the 66.8 per cent remaining population.

In developed societies, there are strong and sustainable safety nets for the people who are not working or have lost their jobs in order for them to have a decent life.

Also, the state takes care of people who have retired as they are seen as assets in society and not as liability to their families.

While there are agencies responsible for similar interventions here in Nigeria and other developing economies, they are far from the ideal.

Experts believe that many civil and public servants in Nigeria borrow or use other legal and dubious means to augment what they get as salary in order to meet up with the demand for the basic necessities of life such as food, shelter, health, education and transportation for their immediate and extended families.

The federal minimum wage, currently at N30,000, was last raised in 2019, when the inflation rate was between 11 and 12 per cent.

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However, the purchasing power of the naira has since been eroded by 276 per cent (compared to what it was in 2019), hence the clamour for an enhanced salary structure.

Nigeria among worse salary payers in Africa

Findings revealed that Nigeria is ranked 44th in Africa in terms of paying the lowest minimum wage, according to Professor Kemi Okuwa of the Nigerian Institute of Social and Economic Research (NISER). Analysis revealed that out of the 76 million workers in the country, only 5.3 million (6.9 per cent) work in the formal sector and are collecting wages.

The findings showed that this is the group that is likely to benefit most from a new minimum wage that has remained contentious and a source of discord between the federal, state and local governments on the one hand and the organised labour on the other hand.

Currently, there is a stalemate in the polity as the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have rejected the N62,000 minimum wage offered by the federal government, even as the Nigeria Governors Forum (NGF) and the Association of Local Governments of Nigeria (ALGON) said they could not afford to pay the figure.

Ironically, the organised labour said anything below N250, 000 would not serve as a living wage which Nigerian workers were aspiring to have.

Many pundits, including some members of the National Assembly, are suggesting that something in the range of N100,000 as minimum wage will uplift the lives of the working class without inducing additional inflation that will hurt the economy further.

Government and private sector workers

In his recent analysis, the Managing Director and Chief Economist of Analysts Data Services and Resources (ADSR), Dr Afolabi Olowookere, said regardless of how the recommendation in the new template for salaries might differ from what labour was currently asking for, both parties would find a common ground and in the final outcome there would be more money for labour.

He, however, said that when the labour finally “wins” the minimum wage battle, another thing that would remain obvious was in dissecting the discrepancy between current low-wage and high-wage workers; wage increase and productivity increase; and then cost of living and standard of living.

Olowookere said, “The implication is that the government will be the major institution that will pay the minimum wage. The private sector is largely informal.

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“The question now is, when they benefit, others will also want to benefit from them, either because they are dependent on them or they are selling things to them.

“The major message is that even when we increase the salary for these few people, we should not lose sight of other people that are dependent on them, and the people that are unemployed; they are many and we don’t have unemployment benefits in Nigeria.

“What also happens to those in the informal sector, even though they are working, they are not earning the minimum wage. The only benefit they can derive is to increase prices of goods and services to the extent that they can squeeze out from those who have benefited.”

Dilemma of workers in states

Dr Olowookere also said that attention should be paid to states, especially given that some of them were not yet paying the N30,000 agreed during the last upward review, which he noted had expired.

He said, “The analysis of the states’ budget performance shows that most of them are using 100 per cent of IGR to pay salaries.

“If there is no Federal Account Allocation Committee (FAAC), they can’t pay salaries. So, if you increase wages, what will be the implication on their performance? How would states with low revenue cope?”

Findings revealed that 15 state governments are yet to implement the old wage of N30,000. They are Abia, Bayelsa, Delta, Enugu, Nasarawa, Adamawa, Gombe, Niger, Borno, Sokoto, Anambra, Imo, Benue, Taraba and Zamfara.

‘Reducing cost of living is the way out’

Speaking on the way forward, Dr Olowookere canvasses a sustainable solution of raising productivity and reducing cost of living for everyone.

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He said when the government continued to increase salaries without corresponding increase in productivity, the cost of living would also keep eroding whatever gain was recorded by the workers and Nigerians in general.

He said, “No doubt, Nigerian workers are due for minimum wage increase. At the current high inflation rate and low productivity level, with everyone being ‘forced’ to provide their own infrastructure, it is a matter of time before all gains are lost.”

FG, states, LGs must not politicise wages – Peterside

In a recent intervention, public policy analyst and former Director General (DG) of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dakuku Peterside, said the implications of creating new salary structures and increasing the minimum wage were complex and multifaceted, requiring the careful consideration of various factors, including economic conditions, industry dynamics and social equity goals.

He said, “Our recent experience has shown that a salary increase may start a merry-go-round of cyclical inflation, which then eats up the value, and then we are back to where we started.

“In an economy with over 40 per cent food inflation, all stakeholders must apply caution and careful measures in implementing a new salary structure.

“However, governments (federal, state and local) cannot afford to play politics with the issue of ‘living wage.’”

Daily Trust

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US envoy meets Tinubu in Paris over economic war

Published

9 minutes ago

April 11, 2025

Trends Admin

U.S. envoy meets Tinubu in Paris

US envoy meets Tinubu in Paris over economic war

The United States has opened discussions with President Bola Tinubu on expanding economic cooperation across Africa as part of efforts to deepen trade, investment, and development ties on the continent.

This was disclosed following a meeting on Thursday between President Tinubu and U.S. State Department Senior Advisor for Africa, Massad Boulos, in Paris, where the Nigerian leader is currently on a short working visit.

According to a statement posted Friday on the official X (formerly Twitter) handle of the U.S. Mission in Nigeria, and shared by President Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, the talks also touched on key security concerns in the region.

“State Department Senior Advisor for Africa Massad Boulos met with President Tinubu on Thursday to discuss regional security, including working together with partners to build a durable peace in eastern DRC,” the U.S. Mission stated.

“They also discussed expanding opportunities for economic cooperation throughout Africa,” it added.

The meeting comes at a time when Nigeria is working to reposition itself as a hub for investment and economic growth on the continent.

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President Tinubu has consistently called for stronger global partnerships to drive industrialization, job creation, and infrastructure development in Africa.

Though specific details of the economic discussions were not disclosed, analysts say the meeting reflects growing American interest in engaging with African leaders on development-focused diplomacy, with Nigeria seen as a critical anchor in West Africa.

President Tinubu has been in Paris since Wednesday, April 2, undertaking a short working visit aimed at reviewing his administration’s midterm performance and setting strategic priorities for the next phase of his tenure.

While abroad, the President has remained actively engaged in state matters, and Thursday’s high-level engagement with the U.S. State Department underscores Nigeria’s central role in regional affairs and global economic conversations.

Tinubu is expected to return to the country shortly, with public attention focused on the outcome of his consultations and the anticipated direction of new policies in the coming months.

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US honours Soyinka, Okundaye at African Cultural Festival 2025 Pennsylvania

Published

2 days ago

April 9, 2025

Trends Admin

US honours Soyinka, Okundaye at African Cultural Festival 2025 Pennsylvania

The United States government through the Pennsylvania House of Representatives and the Pennsylvania Senate has honoured the Nobel Laureate Wole Soyinka and the renowned African art icon, Chief Nike Okundaye of Nike Art Gallery, Lagos for their contributions to art in Nigeria and globally.

While Soyinka was conferred with “Distinguished Honors” for his extraordinary contributions to literature, culture, human rights, and global discourse, Nike Okundaye was honored for her revolutionary impact on contemporary African art.

She was recognized for being the pioneer of the Adire resist-dyeing technique, which has seamlessly blended ancestral motifs with modern aesthetics, earning global acclaim, thereby solidifying her legacy as a custodian of African heritage.

The honor was bestowed on them on March 26 at the unveiling of African Cultural Festival 2025 held at the Pennsylvania State Capitol . The festival will take place from September 19 to 20, 2025, in Pennsylvania.

The Senate of Pennsylvania lauded Professor Soyinka for his pioneering role in modern African literature and his relentless advocacy for free speech, social justice, and democracy.

The Pennsylvania House of Representatives, led by Speaker Joanna E. McClinton, also commended him for his unparalleled literary achievements and for inspiring critical thoughts across generations.’

For Okundaye, she was honoured for giving hope to marginalised women, training and equipping over 5,000 women with Adire-making, weaving, and traditional craft skills.

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“Her mission to foster economic independence and cultural continuity has empowered communities across Nigeria and beyond, ensuring that African artistry thrives in future generations,” the House and the Senate stated.

Speaking about the upcoming festival, Wole Adeniyi, the Chief Executive Officer, CEO of ACI234, said the festival was designed to celebrate African heritage, foster international collaboration, and stimulate trade and cultural exchange between Africa, the United States, and the world.

Adeniyi emphasised that the festival will solidify Africa’s cultural influence while creating pathways for sustainable growth and artistic innovation.

He thanked the Pennsylvania House of Representatives, the Senate, and the State of Pennsylvania for honouring the two Nigerian icons of art.

Part of activities lined up for the festival includes the launching of Duduplugs, an innovative digital platform by ACI234 Entertainment LLC, designed to connect creative industries across continents, and elevate Africa’s creative economy.

Commenting on the upcoming event, Festival Director Foluke Michael described the African Cultural Festival as a celebration of tradition and innovation — a vibrant fusion of Africa’s timeless heritage with contemporary expression.

She acknowledged the pivotal role of the Lagos State Government in laying the foundation for this global movement through the Lagos Black Heritage Festival, which was steered by Professor Wole Soyinka during his tenure as Festival Consultant.

“That era gave birth to a cultural renaissance,” Michael noted. “It was during that time that the iconic Rhumble in Lagos — featuring President Bola Ahmed Tinubu and boxing legend Evander Holyfield — became a symbolic moment that planted the seed for what we now know as the African Cultural Festival.”

She further revealed that the official countdown to the 2025 edition will begin in Lagos at the end of April, setting the stage for a global celebration of African excellence.

US honours Soyinka, Okundaye at African Cultural Festival 2025 Pennsylvania

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Ali Baba spills what Obasanjo told him on how to become Nigeria’s President

Published

3 days ago

April 8, 2025

Trends Admin

Ali Baba

Ali Baba spills what Obasanjo told him on how to become Nigeria’s President

Ali Baba, the ace comedian, has revealed political strategies he claims were shared with him by former President Olusegun Obasanjo on how to become Nigeria’s president.

In an interview on Outside The Box, the 59-year-old entertainer said Obasanjo allegedly shared the strategies with him via chat because he thought he was venturing into politics and wanted to guide him.

Ali Baba claimed that Obasanjo emphasised the importance of gaining the support of seven governors, including the Central Bank of Nigeria (CBN) governor, to clinch the presidential seat.

“I was speaking with Obasanjo one time, and he listed some things that are necessary in politics,” the comedian said while picking up his phone to show proof that he documented his conversation with the former president.

“He thought I was going into politics, so he was happy I was talking to him about politics. He said ‘Ali, I’m happy you are catching up with politics, but you still have a lot to learn about how governors and presidents are selected’.

“He said ‘you need seven governors to win an election. Lagos, Bayelsa, Delta, Rivers, Kano, Kaduna and the CBN governor’. Then I said ‘Kano and Kaduna don’t have money,’ he said ‘that is for the numbers’…

“You need 44 of the most popular senatorial districts.”

The comedian, born Atunyota Alleluya Akpobome, also alleged that Obasanjo mentioned the key tasks to be accomplished in the first term to increase the chances of being re-elected.

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“You need to have awarded 10 contracts and 15% of that contract can give you a marginal impact at the polls. And you must award this contract in your first year of assumption of office,” he said.

“If you don’t do that, then, you can’t ask the people for anything because when you give them at the first year of your getting into office, when it’s time for elections you just tell them ‘Do you want to continue this contract or not’.”

Ali said Obasanjo emphasised the importance of making strategic appointments, including “the chief justice of Nigeria (CJN), controller-general of customs, head of the Nigerian National Petroleum Company (NNPC), inspector-general of police (IGP), and CBN governor”.

The comedian said Obasanjo allegedly advised on steering clear of corrupt governors who are “loaded” and can be “financially useful when needed”.

“He said you must name your CJN, IGP, controller general of customs, head of the NNPC, CBN governor, and you must suspend pending cases of corrupt past governors who are loaded,” he added.

Former President of Nigeria, Olusegun Obasanjo

“Don’t forget that those guys have war chests that they are just sitting and waiting for who they want to align with. No matter how much EFCC milks from them, they still have plenty.

“These are people who were sitting on a monthly federal allocation. Don’t forget that some states that when they get their federal allocation, they don’t touch it.

“They actually add to it because their state’s internally generated revenue is higher than what the federal government gives to them.

“So if the federal government gives them N3, they can add N4 to it and spend N7. When they leave office, EFCC can’t come looking for them because they added money to what the federal government gave them, but you see that internally generated revenue that is their sweat as it is called, it is their money, they generated it themselves. They can determine what they want to do with it.”

Ali Baba alleged that Obasanjo highlighted the importance of securing support from key figures, including foreign countries, the wealthy, religious leaders, and bloggers.

According to him, “he also advised infiltrating opposition parties and strategically influencing delegates by offering incentives to ensure loyalty during elections”.

“This is the meaty part of it, he says ‘Get US or China support because of their businesses in your country, they would support,” he said.

“Get National Association of Nigerian Students, market women, National Union of Road Transport Workers. Unsettle the organized labour. Get 10 of the richest Nigerians on your side. Infiltrate your opposition party and let them decamp for elections.

“So let me explain. You have your party and I want to infiltrate the party. I will send my people to leave my own party and join your own party before the elections. So when the time of election comes, they will then disrupt the whole thing.

“They will probably be the ones they will put in charge of electioneering campaign and you won’t know that the reason they decamped was to make sure that your own campaign doesn’t succeed. So when you are planning, they inform their original party.

“Obasanjo continued saying infiltrate the opposition party, but delegates one year before your congress.

“So I asked how do you buy delegates then he said “you know who and who that would be selected as delegates, give two of his daughters job in the bank, give another’s wife a shop, sponsor another’s trip to Hajj so when the time for election comes and you say this is the person I’m supporting, they won’t mess up because of what you have done.

“While some people are trying to raise money to give dollars, you already have bought their loyalty since. Have a hand in appointing all parties’ chairmen.

“Secure INEC and state rec, blogs, social media, religious leaders, royal fathers, appointment of board of chairman and DGs. Get four constitutional lawyers on retainship.”